VIETNAM Law and Practice Contributed by: Chuyen Hong Huu Le, Tan Nhat Truong Phan and Tu Anh Tran, Tilleke & Gibbins
3.2.10 Transfer of Security Interests Over Aircraft/ Engines Subject to complying with the applicable laws, the transfer of security interests over an aircraft and/or engines is recognised in Vietnam. 3.2.11 Effect of Changes in the Identity of Secured Parties Vietnamese law does not specifically address the effect of non-registered changes in the identity of secured parties. The security interests should techni - cally not be jeopardised insofar as the secured parties do not change. However, it is still advisable to register any change in the identity of the secured parties with the relevant registrars for the purpose of enforcing the security. 3.2.12 “Parallel Debt” Structures The concept of parallel debt is not recognised in Viet - nam. 3.2.13 Effect of Security Assignments on Residence of Secured Parties With the exception of specific facts or circumstances, such as having a permanent establishment in Vietnam before its entry into a security assignment, it is unlikely that a foreign secured party will be considered to be resident, domiciled or carrying on business in Vietnam solely as a result of its execution or enforcement of the security assignment. 3.2.14 Perfection of Domestic Law Mortgages A domestic law mortgage over an aircraft or engine must be registered with the Vietnamese authorities to be effective and enforceable in Vietnam. A secu - rity interest is generally perfected and enforceable against third parties once it is recorded in the Aircraft Register (for aircraft and installed engines via CAAV) or in the Security Measures Database of Vietnam (for uninstalled engines, insurance proceeds, receivables and other movable assets via the National Registra - tion Agency for Secured Transactions (NRAST)). 3.2.15 Differences Between Security Over Aircraft and Spare Engines There are procedural differences in terms of regis - tering security over aircraft versus spare engines in Vietnam. Aircraft and installed engines can be regis -
tered with CAAV and recorded in the Aircraft Register. Meanwhile uninstalled (spare) engines are treated as movable property and registered with NRAST. 3.2.16 Form and Perfection of Security Over Bank Accounts The typical form of security over bank accounts is a mortgage. Vietnamese law does not stipulate whether the bank’s consent is required. However, obtaining consent first would be advisable for the purpose of enforcing the security. 3.3 Liens 3.3.1 Third-Party Liens The concepts of a lien over an aircraft, a security inter - est created under it and a security trustee are gener - ally not recognised under Vietnamese law. Security over aircraft is instead typically established through mortgages or pledges. In addition, Vietnamese law permits the creation of security interests over insur - ance proceeds, payments, rents, profits, revenue or other receivables resulting from the sale, lease or other disposition of the aircraft. 3.3.2 Timeframe to Discharge a Lien or Mortgage The discharge or deregistration of an aircraft mort - gage can be completed within a day. 3.3.3 Register of Mortgages and Charges It is possible to register the aircraft mortgage and the interests of other parties, such as the mortgagee, in the Aircraft Register. 3.3.4 Statutory Rights of Detention or Non- Consensual Preferential Liens In principle, the competent Vietnamese authorities have statutory rights to detain an aircraft in specific circumstances, such as drug trafficking or a failure by the air operator to pay relevant dues to the airport or air navigation authorities. Vietnamese law also recog - nises the indirect right of the creditors, owners, vic - tims or other interested persons to detain an aircraft if it causes damage to a third party while flying. The creditors, owners, victims or other interested persons can exercise this right by sending an aircraft detention request to the court of the province or city where the aircraft is grounded.
592 CHAMBERS.COM
Powered by FlippingBook